Toyota takes 'biggest carmaker' crown

As if to kick it while it's down, Toyota has finally wrestled the biggest volume carmaker crown from GM, having threatened to do so for years now. Toyota shifted 8.92 million cars last year, a four percent annual drop, whereas GM's figure sank by 11 percent to 8.35 million.

Toyota sold around 570,000 more cars than GM in 2008, and that means that the American company must relinquish a title it has held for 77 years - after taking it from Ford in 1931. The Japanese maker has burgeoning hybrid sales to thank for a 70 percent sales increase since 1999 - although it is still expected to post a 1.1 billion Euro operating loss for its financial year.

GM is now working to cut costs and lower its break-even point, particularly as its annual sales will undoubtedly take a further tumble in 2009 - Chief Operating Officer Fritz Henderson claims the US car industry will sell around 2.7 million fewer cars in 2009 than it did in 2008. Unsurprisingly, GM claims it needs another cash injection if it's to avoid bankruptcy - around $4.5bn from the Government, on top of the $4bn it's already taken.

Meanwhile, Chrysler has taken a more industrious route in its quest for survival, by signing an agreement with Fiat for its small car know-how, in exchange for a 35 percent stake. However, it's reported today that Fiat shares plunged after the move's announcement, due to fears the maker will be exposed to Chrysler's losses and take on increased costs.

Mark Nichol